Reference indicators end flat; telecommunications stock rally
Mumbai, December 2 () The Sensex and Nifty market indicators closed on a flat note after a trading in raises on Monday, as losses in shares of private banks and cars offset the recovery at the telecommunications counters.
Investors became cautious in weighing weak GDP numbers and the continuing decline in car sales, which put pressure on the actions of the banking and automotive sector.
In addition, participants also took a defensive stance before the monetary policy meeting of the Reserve Bank.
After a volatile trading day, the BSE Sensex of 30 shares closed marginally up 8.36 points or 0.02 percent at 40,802.17. The index ranged from a maximum of 41,093.99 to a minimum of 40,707.63 during the day.
On the other hand, the broader NSE Nifty stood at 7.85 points or 0.07 percent at 12,048.20.
On the Sensex list, Bharti Airtel emerged as the biggest winner with a 3.67 percent increase. Reliance Industries, RJio parent company, rose 2.28 percent.
The shares of the telecommunications companies increased due to the new tariff plans announced by the operators that will be effective as of December 3.
Another operator, Vodafone Idea, also saw its shares close more than 14 percent at Rs 7.79 per unit in the BSE. The stock rose 22.63 percent to Rs 8.40 in the NSE.
In addition to Airtel and RIL, other main winners of Sensex were Asian Paints, Kotak Bank and Mahindra and Mahindra.
On the other hand, Yes Bank was the biggest loser of the group, with a fall of 6.22 percent. It was followed by Bajaj Finance, ONGC, Sun Pharma, Maruti Suzuki and Tech Mahindra, which fell by up to 3 percent.
The low sales figures of the automotive companies led to the fall of their shares.
Sectorially, telecommunications emerged as the best performing BSE index, with an increase of more than 2.64 percent. Other sectoral winners in BSE were energy, metal and basic materials, which increased to 1.28 percent.
On the other hand, the rates of cars, IT and medical care witnessed a decrease. Of the 19 sector indexes, 4 ended in green and 15 in red.
Despite the positive sentiment in the global market due to better-than-expected manufacturing data in China, the domestic market traded in a limited range due to weak GDP, car sales and ahead of the RBI's monetary policy. week. But the market expects greater stimulus and ease in interest rates to revive the economic slowdown. The weakness was broad based, while telecommunications actions increased due to the aggressive tariff revision.
Vinod Nair, Head of Research at Geojit Financial Services, said.
On the front of the coin, the Indian rupee appreciated 10 paise at 71.64 against the US dollar.
Brent crude, the world benchmark for oil, rose 2.36 percent to USD 61.92 per barrel in futures trading.
Asian markets were higher after a survey that showed that the activity of Chinese factories strengthened investor sentiment.
In addition, investors were also hopeful about a possible trade agreement between the United States and China before the December 15 deadline for increasing tariffs. On Friday, foreign institutional investors unloaded shares worth Rs 1,892.29 rupees in the capital market, while domestic institutional investors bought shares worth Rs 953.62 rupees, according to available data in a bag. BAL MKJ